Licensees who want to fight for a review of their business rates should be wary of rogue companies offering to lodge appeals on their behalf.
Many pubs have found their business rates have spiralled after the revised bills were issued on April 1 - in some cases by as much as 30 per cent.
Licensees who want to lodge appeals against their set rates have been able to do so since the beginning of April.
But many have contacted The Publican to voice their concerns about operators who are offering to do this for them in exchange for a flat fee. Many of these operators do not have the necessary expertise to launch an effective appeal on behalf of the licensee.
Licensees should only seek advice from agents who are members of the Royal Institute of Chartered Surveyors (RICS).
The Valuation Office Agency (VOA), which is responsible for the business rates review, advises businesses to talk directly to its officers as it costs nothing to make an appeal themselves.
The new system, which has set the rates payable for pubs for the next five-year period, is based on the value of the business, calculated using a combination of rental values and turnover.
The VOA, part of the Inland Revenue, issued its own warning last year on rogue agents. This followed complaints that they were offering unfair contract terms and demanding money up front in an attempt to pressure licensees into signing up with them to act on behalf in rate reviews.
Information on rateable values is now available on the VOA website: www.voa.gov.uk.
Advice from the Valuation Office Agency
- Beware of the hard-sell tactics of telesales or doorstep sales people offering to help you appeal against your business rates. Ask searching questions before you sign anything
- Take time to probe the terms of any contract you are offered and be aware there may be terms which commit you to a period of service
- Find out if the agent is able and willing to put you in touch with satisfied clients
- Be suspicious of any agent who claims to be able to get you a big reduction in your rateable value without inspecting your property and checking your accounts
- Check the credentials of any agent who claims to be a member of a professional rating body.
Grounds for appeal
The rateable value of a property reflects its value on a specified date. A change in circumstances can bring grounds for a rate reduction, such as:
- A change in occupation
- Physical alterations to the property
- New competition affecting trade
Temporary allowances
- Refurbishment of the property
- Building construction in the local area
- Roadworks, diversion or temporary closure
For more information go to www.voa.gov.uk